Key Takeaways:
- Justice Aedit Abdullah had approved Angela Ee and Aaron Loh of EY Corporate Advisors Pte. as the interim judicial managers.
- Earlier this month, Hodlnaut froze withdrawals and laid off 40 people.
Singaporean crypto firm Hodlnaut announced that it had been placed under judicial management by the Singapore High Court.
The latest development comes weeks after the lending platform froze withdrawals, swaps, and deposits, citing difficult market conditions.
The troubled firm applied to be put under judicial management on August 13. On Monday. Hodlnaut’s legal team attended a court hearing alongside two creditors, both of which submitted nominations for IJM candidates.
Justice Aedit Abdullah had approved Angela Ee and Aaron Loh of EY Corporate Advisors Pte. as the interim judicial managers, Hodlnaut revealed.
“We will not be able to provide further information at this juncture but hope to provide further updates once our IJMs (Interim Judicial Managers) determine it necessary to do so,” Hodlnaut’s announcement reads.
In the judicial management process update published on August 19, Hodlnaut says the company’s Hong Kong subsidiary suffered from the terrausd (UST) crash. At the time, Hodlnaut claims the terrausd (UST) crash sparked “unusually high volumes of withdrawals.”
Earlier this month, the company also had to lay off roughly 80% or 40 of its workforce to cut costs. Hodlnaut says that the remaining employees on the team are the “necessary headcount for us to carry out key functions.”
The firm said it would also reduce burn rates and change all open-term interest rates to 0% to regain the lost liquidity.
Hodlnaut also had earlier said that it is engaged in “proceedings” with Singaporean authorities but did not dwell more into the matter. The company has, however, clarified that it is “not the subject of any investigations by the Singapore Police Force.”
With this judicial management option, Hodlnaut hopes to help customers get the most and “avoid liquidation of Hodlnaut’s holdings of BTC and ETH at today’s depressed prices.”
Apart from Holdnaut, the TerraUSD crash in May and the market conditions have pushed big names in the industry to bankruptcy. Crypto hedge fund Three Arrows Capital(3AC) and lenders Voyager Digital and Celsius Network have all filed for bankruptcy recently.
